Which statement best defines a compact state?

A compact state is defined as a state that participates in an interstate agreement, allowing licensed practitioners, including psychologists, to practice across state lines without having to obtain a new license in each state. This is particularly relevant in the context of telepsychology, where practitioners may offer services to clients located in other states. By participating in such an interjurisdictional telepsychology agreement, these compact states facilitate the provision of psychological services, promoting accessibility and consistency among state regulations.

The other options relate to aspects of licensing and education but do not encompass the concept of a compact state. The valid authorization to practice psychology is necessary for all psychologists but does not define the inter-state agreements. Similarly, the required degree from an accredited institution and recognition by the U.S. Department of Education pertain to the qualifications needed for practice rather than the collaborative agreement between states that characterizes compact states.